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Risk Management and Insurance Study Set 1
Quiz 19: The Liability Risk
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Question 21
Multiple Choice
Michelle had major abdominal surgery.Months after the surgery,she still did not feel well.When she was operated on again,the surgeon discovered two sponges that were not removed at the conclusion of the first operation.Michelle should be able to collect damages without having to prove negligence under the doctrine of
Question 22
Multiple Choice
All of the following are examples of tort reform proposals EXCEPT
Question 23
Multiple Choice
The Sarbanes-Oxley Act requires which of the following? I.Accounting firms auditing a company's books must provide other major services to the firm besides auditing services. II.The company's Chief Executive Officer (CEO) must swear to the accuracy of quarterly and annual financial reports.
Question 24
Multiple Choice
Shareholders and employees harmed by the negligent acts and deceptive statements of company leaders may file lawsuits against the company leaders.Company leaders are covered for such claims under which type of insurance?
Question 25
Multiple Choice
James was injured in an auto accident caused by another motorist's negligence.To reimburse him for his hospital bills and lost earnings,items which can be specifically itemized,James will receive
Question 26
Multiple Choice
All of the following are proposed solutions to the medical malpractice problem EXCEPT
Question 27
Multiple Choice
Arguments in favor of reforming the civil justice system include which of the following? I.There is often a long delay in settling lawsuits. II.Compensation awards have decreased significantly over the past two decades.
Question 28
Multiple Choice
Malcolm was involved in an auto accident.He was judged to be 20 percent at fault in the accident,and the other party was judged to be 80 percent at fault.Malcolm's actual damages were $40,000.Under a pure comparative negligence rule,how much will Malcolm receive for his injuries?
Question 29
Multiple Choice
All of the following are categories of torts EXCEPT
Question 30
Multiple Choice
Jan was injured in a work-related auto accident.She sued the other driver,and the case went to court.While questioning Jan,the defendant's lawyer asked if her injuries and lost earnings were covered under workers compensation.Jan's lawyer objected to the question.The judge ruled the question was improper and instructed the jury to disregard the question.Based on the judge's reaction to the question,we can conclude that which of the following rules is in force where this trial took place?
Question 31
Multiple Choice
Under one doctrine,a person who understands the danger inherent in an activity cannot recover damages in the event of injury from the activity.This doctrine is called the
Question 32
Multiple Choice
Bruce believes a local manufacturer is responsible for contaminating some land he owns.He filed suit against the company.Rather than have the case go to court,the manufacturing company's legal team suggested mediation or arbitration to settle the case.Methods that are employed to resolve legal disputes without litigation,such as mediation,are called
Question 33
Multiple Choice
The doctrine of respondeat superior applies to a(n)
Question 34
Multiple Choice
James was injured in an auto accident caused by another motorist's negligence.He received severe facial lacerations and injured his back in the accident.In payment for his pain,suffering,and disfigurement,losses which cannot be specifically itemized,James will receive
Question 35
Multiple Choice
Alternative techniques for resolving legal disputes without litigation include which of the following? I.Arbitration II.Mediation
Question 36
Multiple Choice
Situations under which parents can be held liable for the actions of a child include which of the following? I.The child uses a parent's gun to injure someone. II.The child is acting as an agent of the parent.
Question 37
Multiple Choice
One tort reform permits manufacturers to assert that as long as the product conformed to the prevailing technology and production methods at the time it was produced,it cannot be considered a defective product today.This defense is called the
Question 38
Multiple Choice
A defendant who is only slightly liable may be required to pay the full amount of damages under which of the following?
Question 39
Multiple Choice
Francis opened a store.She knows that customers who come to the store may be injured on the premises and hold her responsible for their injuries.Under common law,business customers in the store Francis opened are considered